Financial Stand
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Why is Crypto preferred and which companies are investing in it?

In as much as crypto investing has the risks associated as noted above. Companies are willing to invest in it because of this key benefits

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Why Crypto is preferred and which companies are investing in cryptocurrency?

Cryptocurrency is a mode of exchange like normal currencies. e.g dollar, pounds etc. The unique thing about cryptocurrency is it’s designed to be exchanged digitally. No bank or government claims to own or operate it.

This freedom has made cryptocurrency to be a lucrative venture with banks and other financial institutions wanting a share. In this article, you will learn the insights of making crypto the preferred method, the risks involved in acquiring them, benefits accruing from investing, and what exposure companies investing in crypto have and finally, I will share the companies putting their money into crypto. stay tuned!

Why crypto is the preferred method of investing resources?

1)Accessibility: owning, operating, and transacting crypto is easy. You require a smart device e.g phone, laptop, or computer, an internet connection, and a digital wallet. And you ready to buy and sell (transacting) comfortably.

2) Fraud-proof: No company or financial institution wants to risk its resources with a currency prone to fraud. crypto is operated with a blockchain. This is where all the transactions are recorded and no one can have the ability to manipulate the blockchain. Therefore, it’s secure. Since each transaction is first confirmed.

3)Instant Settlement: Companies love transactions that are smooth, accurate, and timely. Crypto offers exactly that.

4)You are the owner: There is no other electronic system where you own the account.

5)No identity theft.

However, in as much as crypto is a great investment if prudently executed, it’s as risky as any other currency. 

Among the risks involved in Crypto include;

1)Volatility-This is a situation where the cryptocurrency prices suddenly change. i.e the price per BTC can decrease in hundreds or thousands of dollars within a short time.

2)They are unregulated. No bank or government has regulations regarding the crypto. It’s crucial for companies investing to aware of it.

3)They are susceptible to error and hacking

Since all the transactions involved in crypto are done online, Criminals can secretly access your account passwords through hacking of your computer. This situation can leave your wallet susceptible to being wiped dry. 

4)It can be affected by changes in the blockchain.

This is a situation where a previously invalid transaction becomes valid. This is due to either a disagreement in the community or it is necessitated by the developer.

In as much as crypto investing has the risks associated as noted above. Companies are willing to invest in it because of this key benefits:

a)Generates revenue faster and consistently.

For any prudent investor, revenue generation is the purpose of investment. For cryptocurrency, the return on investment is high and consistent that’s why many companies are consistently blowing their resources to have a share.

b)There are no banking fees involved.

Dealing with cryptocurrency helps you eliminate all the annoying charges when sending, receiving, or withdrawing in a bank situation. Again no charges are incurred to hold the account balance.

  1. c) It’s global.

Cryptocurrency is accepted everywhere in the world. This gives it viability and companies are cashing in from the globalization of crypto.

Companies who despite the highlighted risks, take the plunge and invest in crypto are exposing themselves to huge profits. Since the prices of the Crypto are consistently high.

Lastly, financialstand.com, gives you a chance to be privy to public listed companies who are investing in cryptocurrency. You will be aware of their total bitcoins and value so far accrued.

1)Micro strategy Inc

This is a mobile software development company based in the USA. It has invested heavily in Bitcoin by purchasing $ 425 million worth of BTC. This gives them 38 250 BTC. This move made BTC the main reserve asset for the company.

2)Square Inc

It’s a firm by Jack Dorsey. The Mobile payment firm made a footprint by having 1 % of its total assets moved into Bitcoin. It spent $  50 million buying. 4709 BTC. This investment is guided by the fact that Bitcoin is likely to be the universal currency in the future.

3)Coin Share

 Is a UK- based investment fund that’s focused on managing digital assets. It has  $ 1 billion Assets under its wings and 80 % of this is Bitcoin.  Currently, it holds 69 730 BTC on behalf of investors valued at $790 million.

4) Grayscale

Is a company with a big footprint in the Bitcoin space.It offers accredited investors a platform to gain exposure and experience in Bitcoin and other cryptocurrency assets. It currently has 481 771 BTC under its management.

5)Galaxy Digital Holdings

This the first crypto-focused merchant bank. It has a total of 16 651 pieces of BTC that’s worth over $ 257 million at the current price. It was founded by Michael Novogratz. His firm has partnered with block. one and Block.fi

6) 3iQ

This is a Canadian crypto-asset portfolio. This firm has 8296 BTC. Which is worth $128 million. Having had a run-in with the regulation for a few years, right now they are listed on the Toronto stock exchange. This paved way for Canadians to invest in Bitcoin and crypto through their investment managers.

7)ETC Group Bitcoin ETP.

This a London-based ETP group with a market share of 5215 BTC worth  $ 80million. It’s the first exchange-traded product. To make it more recognized, it’s listed on Deutsche Börsè.

This list proves the fact that cryptocurrency is here and the faster we accept and learn about it, the luckiest we will be. Let’s invest in it.

For more insightful articles on the latest cryptocurrency happenings, Don’t hesitate to look out financialstand.com. We continuously update our subscribers.

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